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Union Bank has announced the ban of its senior staff
association. This is the aftermath of the December 15, 2010 industrial action
which crippled operations nationwide for about three days.

The bank made this known in a terse press statement release
yesterday in Lagos captioned, ‘Withdrawal of recognition of Union Bank
Association of Senior Staff (UBASS), Association of Senior Staff of Banks,
Insurance and Financial Institutions (NLC Affiliate) (ASSBIFI).’

“Following the unlawful operations of UBASS and ASSBIFI, Union
Bank of Nigeria Plc has withdrawn its recognition of the above named trade
union bodies with immediate effect. All concerned have been duly advised. The
general public should please take note,” the statement read.

The other union, National Union of Banks, Insurance and
Financial Institutions Employees (NUBIFIE), was, however, not affected by the
proscription.

Collective agreement

The 94-year old financial institution, with a workforce of over
8,000, said it will take disciplinary action against any staff that has been
found to breach the terms of their employment.

“Some staff were found to be exposing false and confidential
customer information to the public, including shareholders. In the collective
agreement, it is stated there, the dos and don’ts of members. When there is no
rule, everybody becomes lawless. We will do the proper thing. We will not
victimise anybody,” Mrs. Osibodu said, adding that 315 staff were promoted in
December, 300 staff are facing disciplinary action for various infractions,
while some have received commendation.

However, ASSBIFI, in its response, said the bank has no
constitutional basis for withdrawing recognition of the union. Its response
letter, signed by the national president, Princewill Ojeh, and secretary
general, Obukese Orere, stated that the issue of withdrawal of recognition is
null and void.

“Recognition of Trade Unions by various managements is
compulsory and automatic and not a choice or wish. Trade Unions Act No 22
chapter 437, third schedule part B (7) of 1978 as amended refers.”

According to ASSBIFI, membership of unions is guaranteed by
Section 40, 1999 Constitution on freedom of association.

“No organisation has a unilateral power to withdraw recognition
from a trade union registered under the Trade Union Act,” and urged the bank to
withdraw the proscription letter.

Union Bank gets N239b
AMCON funds

Union Bank said it has received N239 billion from the Asset
Management Corporation of Nigeria (AMCON) for the purchase of its non
performing loans in the first phase of bailout.

This is in addition to N120 billion capital injection received
from the Central Bank of Nigeria (CBN) when it intervened in 2009 following the
sack of the former managing director.

Group managing director, Funke Osibodu, at a briefing in Lagos
yesterday, said the funds may not be the final intervention as the bank would
conclude reconciliation of its accounts in the next one week. She said the bank
had a negative capital of N254 billion and would still need about N154 billion
to move up to ground zero, after which a core investor can come in.

“This N154 billion will be covered by they (AMCON) taking equity
in the bank to that level. We place this at the table, on the terms of the
equity with AMCON, they provide the money they become the shareholder
technically and then we are now at ground zero,” Mrs. Osibodu said.

She said at this point, a new core investor can come in. “The
minimum capital that may be required is N100 billion for an institution of our
size.”

She further said the bank was already talking to new core
investors. “We have a preferred core investor and we have a standby core
investor. Out of all that have indicated interest, we have narrowed down to
two. We still have to negotiate the broad terms of engagement.”